What is the SEC and how does it defend investors from securities fraud?

The Securities and Exchange Commission (SEC) is a federal agency based in the United States that establishes laws and regulations to protect investors from securities fraud, or illegal activities related to the buying and selling of stocks, bonds, and other investments. The SEC monitors the stock markets and other exchanges to make sure that companies comply with all applicable laws and regulations. The SEC has several enforcement powers, such as the ability to issue cease and desist orders, suspensions, and disgorgements, to combat securities fraud. The SEC can investigate any company suspected of fraudulent activities. In addition, the SEC can pursue civil actions in federal court and bring criminal charges against any individuals or companies found to have violated securities laws. The SEC also works with self-regulatory organizations (SROs) to help protect investors. These organizations provide oversight of stock markets and other exchanges to ensure that investors receive accurate and timely information when they purchase stocks, bonds, and other financial products. The SROs also have the authority to censure, suspend, or even expel members found to have violated their rules. In California, the SEC takes a very active role in curbing securities fraud. The SEC and other regulatory agencies within the state investigate suspicious activities and bring enforcement actions against companies or individuals found to have violated securities laws. The SEC also encourages investors to report fraud and helps protect victims of fraud by returning money to them.

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What is the SEC and how does it defend investors from securities fraud?

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